BoE raises Bank Rate by 25bps to 0.75% as widely expected. But surprisingly, it was done by a 8-1 vote, with Jon Cunliffe voting for no change at 0.50%. In the statement, BoE said, “some further modest tightening in monetary policy may be appropriate in the coming months, but there are risks on both sides of that judgement depending on how medium-term prospects for inflation evolve.”
“The invasion of Ukraine by Russia has led to further large increases in energy and other commodity prices,” BoE said. “Global inflationary pressures will strengthen considerably further over coming months, while growth in economies that are net energy importers, including the United Kingdom, is likely to slow.”
